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Trump Faces Blowback Over Plans for Crypto Reserve

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Trump Faces Blowback Over Plans for Crypto Reserve

Cryptocurrencies are again riding high, after President Trump announced that he would create a national crypto reserve with five tokens, including three lesser-known and highly volatile ones.

It’s the latest boost that Trump has given the crypto industry, which spent some $130 million backing him and other Republicans. But the news drew criticism from many, including conservatives and even ardent crypto backers, over many concerns: giveaways to an already wealthy community, delegitimizing the digital currency industry and more.

“I will make sure the U.S. is the Crypto Capital of the World,” Trump declared on his Truth Social network on Sunday in announcing the reserve, which would involve the federal government stockpiling five tokens: two well-established ones (Bitcoin and ether) and three newer and more thinly traded ones (XRP, solana and cardano).

Proponents say a reserve would help taxpayers benefit from crypto’s price growth. It’s still not clear how such a reserve would work or when it would be introduced, though a Republican-authored bill in the Senate would direct the government to buy one million Bitcoins — worth about $92.6 billion at today’s prices — over five years.

The plan is music to the ears of many in the crypto industry, who have already benefited significantly from Trump moves like picking regulators who will go easier on digital currencies. The price of Bitcoin alone has jumped 36 percent since the election in November.

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Critics of all political stripes decried the move. Some Republicans raised questions about spending taxpayer money on risky assets instead of paying down the national debt. Joe Lonsdale, a friend of Elon Musk’s, wrote on X: “It’s wrong to steal my money for grift on the left; it’s also wrong to tax me for crypto bro schemes.”

Some protested the seeming latest conflict of interest involving Trump and crypto, noting that Trump profited from promoting the so-called memecoin $Trump before his inauguration. (The S.E.C. last week said memecoins wouldn’t be subject to regulatory oversight.) “This is getting egregious,” the software developer Nikita Bier replied to Lonsdale’s post. “Every 2 weeks there is a kickback to the family. Completely delegitimizes all the work DOGE is doing.”

Others questioned whether David Sacks, the investor who is Trump’s crypto czar, also stands to benefit from such a reserve. Sacks wrote on X that he had sold his cryptocurrency holdings, but didn’t address any holdings his investment firm has in crypto start-ups. Sacks will chair a first-of-its kind crypto White House summit on Friday intended to discuss ways to spur innovation and growth in the sector.

This poses a longer-term question. Judging by Sunday’s rally in crypto assets, this could vastly benefit crypto investors, who showed that they’re willing to inject huge sums into politics. Could such an explicitly beneficial policy for crypto give them even more ammunition to influence future elections, further reshaping government in their favor?

Consulting firms lobby Washington to save their contracts. Ernst & Young and Booz Allen are among those trying to persuade the Trump administration not to ditch their work agreements, The Wall Street Journal reports. Meanwhile, a new CBS News poll shows Americans are split on whether the so-called U.S. DOGE Service is good; The Times found more errors with DOGE’s contract-cutting math; and President Trump appears to be cautious about cutting Medicaid.

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Andrew Cuomo officially enters the New York mayoral race. The former governor, who left Albany in 2021 amid sexual harassment charges, has already picked up two union endorsements and emerged as the new front-runner to unseat Mayor Eric Adams. Cuomo has vowed to crack the city’s homeless problem, and rebuild its police department, but steered clear of mentioning Adams or Trump.

“Anora” scores big at the Oscars. The film took home five Academy Awards, including best picture, director, actress and original screenplay. It has pulled in just $41 million globally, one of the lowest grossing films ever to win best picture, but it illustrated how smaller distributors like Neon, which released the movie, and A24, which was behind “The Brutalist,” outshined bigger studios in awards this year.

European defense stocks are rallying on Monday, along with the euro, after the region’s leaders vowed to take on “the heavy lifting” of defending Ukraine from Russia. It’s the latest development in the three-year-old war after Friday’s Oval Office blowup put President Volodymyr Zelensky of Ukraine on the outs with President Trump.

But behind the investor enthusiasm lies the question: Can Europe, facing high debt loads, chronically low growth and looming tariffs imposed by Trump, afford more military spending?

Ending the Russia-Ukraine war carries a high cost. Prime Minister Keir Starmer of Britain rolled out a four-point plan this weekend at a gathering of European leaders and Zelensky.

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It includes an Anglo-French “coalition of the willing” to defend any eventual deal for Ukraine, which could mean “boots on the ground and planes in the air.” Britain also lent £2.26 billion ($2.86 billion) to Ukraine to help bolster its military forces.

Even before the summit, credit agencies had warned about Europe’s finances. For example, increasing NATO members’ defense spending to 3 percent of G.D.P. — which is still short of the 5 percent that Trump wants — could force European governments to make unpopular spending cuts that weaken social safety nets, Fitch Ratings has warned.

Other political options include loosening fiscal rules to allow for greater defense, rerouting unspent NextGenerationEU funds to military buildup and or raising taxes.

Borrowing would carry a hefty cost, too. European bond yields ticked higher on Monday, a sign that investors were growing worried about potential growth in public spending. Analysts are divided on whether such commitments could muddle the European Central Bank’s plans to cut interest rates; the central bank meets later this week.

The stakes are huge. Failure to help Ukraine could eventually push European nations into accepting a deal that favors President Vladimir Putin of Russia. That could test E.U. cohesion, analysts say — but might be welcomed by those interested in seeing a divided Europe.

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“Trump, Putin (and possibly Elon Musk?) all seem to dislike the European Union,” Holger Schmieding, an economist at the German bank Berenberg, wrote in a research note this on Monday. “They would prefer to deal one-by-one with a panoply of minnows and middling countries than with a union that represents the second biggest market in the world.”


In recent years, SoftBank of Japan had sought to make its Vision Fund unit — home to three large financial vehicles that defined a once-heady era of tech investing — more conservative.

But the desire of Masa Son, SoftBank’s C.E.O., to become a lead investor in the artificial intelligence race is driving the company to spend heavily again, and raises questions about how the Vision Funds fit into that vision.

The funds’ C.E.O., Alex Clavel, gave DealBook’s Michael de la Merced his first interview since assuming sole leadership of the unit in January about that, and more.

The new vision: The funds, which gained notoriety for pouring hundreds of millions into companies like WeWork and the robot-aided-pizza-maker Zume, are now meant to make minority investments in start-ups where someone else is in control, Clavel said. (SoftBank’s $3.5 billion investment in OpenAI is part of Vision Fund 2.)

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How the Vision Funds are doing: The division reported a nearly 310 billion yen ($2 billion) loss in the fourth quarter, as the paper value of holdings like the e-commerce company Coupang fell. But Clavel noted that the division over all grew last year, with its fair value rising by $5 billion and distributing about $66 billion via I.P.O.s and other cash-out events.

A survey of the Vision Funds’ hundreds of portfolio companies, whose results were shared first with DealBook, found that many of their C.E.O.s were:

  • more optimistic about the economy and their businesses’ prospects compared with a year ago — though they’re also feeling more stressed;

  • worried about inflation, high interest rates and ongoing market volatility;

  • and focused on organic growth, but also on conserving cash and stabilizing their companies.

The A.I. factor: A majority of Vision Fund portfolio company C.E.O.s are using the technology in their core products, a reflection of the overall focus of SoftBank on becoming a leader in the field. “We do see A.I. as a secular trend, a revolution,” Clavel told DealBook.

That has meant investing in prominent A.I. companies like OpenAI and the data intelligence provider Databricks at increasingly soaring valuations. (The Databricks C.E.O., Ali Ghodsi, told DealBook that “we’re at peak bubble territory for A.I.”)

Clavel acknowledged that “valuing world-beating companies in revolutionary times is not an easy thing to pinpoint.” But, he added, paying up big was the cost of entry. “We’re really convinced that this is a revolution,” he added.

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What’s next: The Vision Funds are betting that it will become easier to take companies public this year, allowing the SoftBank funds to start selling their holdings and locking in gains. “We’re looking forward to the I.P.O. market opening back up,” Clavel said.

One thing not to expect anytime soon, he added, was outside investors returning to the Vision Funds. (While the first Vision Fund counted Saudi Arabia and Abu Dhabi as investors, the second Vision Fund is all SoftBank money.) “We don’t have any plans to do that,” Clavel said, noting that SoftBank itself has added money to Vision Fund 2 when required.


A major presidential address, jobs, and tariffs — here’s what’s in focus this week.

Tomorrow: President Trump will address Congress, outlining his policy agenda. His administration’s tariffs against Canada, Mexico and China are scheduled to go into force hours earlier. Stocks in Europe and Asia on Monday are mostly higher after Howard Lutnick, the U.S. commerce secretary, suggested on Sunday that the levies could be lower than expected, reviving hopes that Trump’s trade war threats aren’t set in stone.

Wednesday: The Fed’s “beige book” survey of regional economic activity is scheduled to be published.

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Friday: It’s jobs day. Despite the deep Elon Musk-led cuts within the federal government, economists forecast that employers added about 160,000 jobs in February. Inflation hawks will closely watch data on wages.

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Civil case against Alec Baldwin, ‘Rust’ movie producers advances toward a trial

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Civil case against Alec Baldwin, ‘Rust’ movie producers advances toward a trial

Nearly two years after actor Alec Baldwin was cleared of criminal charges in the “Rust” movie shooting death, a long simmering civil negligence case is inching toward a trial this fall.

On Friday, a Los Angeles Superior Court judge denied a summary judgment motion requested by the film producers Rust Movie Productions LLC, as well as actor-producer Baldwin and his firm El Dorado Pictures to dismiss the case.

During a hearing, Superior Court Judge Maurice Leiter set an Oct. 12 trial date.

The negligence suit was brought more than four years ago by Serge Svetnoy, who served as the chief lighting technician on the problem-plagued western film. Svetnoy was close friends with cinematographer Halyna Hutchins and held her in his arms as she lay dying on the floor of the New Mexico movie set. Baldwin’s firearm had discharged, launching a .45 caliber bullet, which struck and killed her.

The Bonanza Creek Ranch in Santa Fe, N.M. in 2021.

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(Jae C. Hong / Associated Press)

Svetnoy was the first crew member of the ill-fated western to bring a lawsuit against the producers, alleging they were negligent in Hutchins’ October 2021 death. He maintains he has suffered trauma in the years since. In addition to negligence, his lawsuit also accuses the producers of intentional infliction of emotional distress.

Prosecutors dropped criminal charges against Baldwin, who has long maintained he was not responsible for Hutchins’ death.

“We are pleased with the Court’s decision denying the motions for summary judgment filed by Rust Movie Productions and Mr. Baldwin,” lawyers Gary Dordick and John Upton, who represent Svetnoy, said in a statement following the hearing. “He looks forward to finally having his day in court on this long-pending matter.”

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The judge denied the defendants’ request to dismiss the negligence, emotional distress and punitive damages claims. One count directed at Baldwin, alleging assault, was dropped.

Svetnoy has said the bullet whizzed past his head and “narrowly missed him,” according to the gaffer’s suit.

Attorneys representing Baldwin and the producers were not immediately available for comment.

Svetnoy and Hutchins had been friends for more than five years and worked together on nine film productions. Both were immigrants from Ukraine, and they spent holidays together with their families.

On Oct. 21, 2021, he was helping prepare for an afternoon of filming in a wooden church on Bonanza Creek Ranch. Hutchins was conversing with Baldwin to set up a camera angle that Hutchins wanted to depict: a close-up image of the barrel of Baldwin’s revolver.

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The day had been chaotic because Hutchins’ union camera crew had walked off the set to protest the lack of nearby housing and previous alleged safety violations with the firearms on the set.

Instead of postponing filming to resolve the labor dispute, producers pushed forward, crew members alleged.

New Mexico prosecutors prevailed in a criminal case against the armorer, Hannah Gutierrez, in March 2024. She served more than a year in a state women’s prison for her involuntary manslaughter conviction before being released last year.

Baldwin faced a similar charge, but the case against him unraveled spectacularly.

On the second day of his July 2024 trial, his criminal defense attorneys — Luke Nikas and Alex Spiro — presented evidence that prosecutors and sheriff’s deputies withheld evidence that may have helped his defense . The judge was furious, setting Baldwin free.

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Variety first reported on Friday’s court action.

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California’s gas prices push Uber and Lyft drivers off the road

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California’s gas prices push Uber and Lyft drivers off the road

The highest gas prices in the country are making it tougher for some gig drivers to make a living.

Gas prices have shot up amid the war in the Middle East. On average, California gas prices are the most expensive in the United States, according to data from the American Automobile Assn. The average price of regular gas in California is almost $6. The national average is a little above $4.

While Uber and Lyft drivers have concocted clever ways to cut gas consumption, they say that without some relief they will be forced to leave the ride-hailing business.

John Mejia was already struggling to make money as a part-time Lyft driver when soaring gas prices made his side hustle even harder.

“Unfortunately, it’s the economics of paying less to drivers and gas prices,” he said. “It actually is pulling people out of the business.”

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Guests at The Westin St. Francis hotel get into an Uber.

(Jess Lynn Goss / For The Times)

Gig work offers drivers the freedom to work for themselves and more flexibility, but being independent contractors also means they must shoulder unexpected costs.

Ride-sharing companies say they’re trying to help, but drivers say the gas relief comes with caveats. For now, drivers say they’re being pickier about what rides they accept, cutting hours and are looking at other ways to make money.

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Mejia, who started driving for Lyft more than a decade ago, said in his early days, he would sometimes make $400 in three hours. Now it takes 12 hours to rake in $200.

The San Francisco Bay Area consultant is an active member of the California Gig Workers Union, so he knows he isn’t alone. California has more than 800,000 gig rideshare drivers, according to the group, which is affiliated with the Service Employees International Union.

On social media sites such as Reddit and Facebook, gig workers have posted about how the higher gas prices are eating into their earnings. Among the tricks they are suggesting: reducing the number of times the ignition is turned on or off, avoiding traffic, working in specific neighborhoods and at times with high demand and switching to electric vehicles.

Gig drivers usually have only seconds to decide whether to accept a ride on the app, but they have become more strategic about which rides and deliveries they accept.

That means they are more likely to sit back in their cars and wait for higher fares for quick pick-up and drop-off.

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“I highly recommend the ‘decline and recline’ strategy, rejecting unprofitable rides until a better one appears,” wrote Sergio Avedian, a driver, in the popular blog the Rideshare Guy.

Pedestrians cross the street in front of a Lyft and Uber driver.

Pedestrians cross the street in front of a Lyft and Uber driver on Wednesday. High gas prices have made it hard for gig drivers to make a living, cutting into their profits.

(Jess Lynn Goss / For The Times)

Uber, Lyft and other companies have unveiled several ways to help drivers save on gas.

Uber said drivers can get up to 15% cash back through May 26 with the Uber Pro card, a business debit Mastercard for drivers and couriers. Based on a worker’s tier, they can get up to $1 off per gallon of gas through Upside — an app that offers cash rewards — and up to 21 cents off per gallon of gas with Shell Fuel Rewards. The company also offers incentives for drivers who want to switch to electric vehicles.

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“We know the price of gas is top of mind for many rideshare and delivery drivers across the country right now,” Uber said in a blog post about its gas savings efforts.

Lyft also said it’s expanding gas relief through May 26 because the company knows that the extra cost “hits hardest for drivers who depend on driving for their income.”

The company is offering more cash back, depending on the driver’s tier, for drivers who use a Lyft Direct business debit card to pay for gas at eligible gas stations. They can get an additional 14 cents per gallon off through Upside.

Drivers say the fine print on the offers dictates which card they use and where they fill up gas, making it difficult for them to save money.

“If I do the math, it’s ridiculous,” Mejia said. “They’re offering us nothing.”

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Uber declined to comment, but pointed to its blog post about the gas relief efforts. Lyft also referenced the blog post and said “the gas savings were structured through rewards to maximize stackable opportunities.”

Guests at The Westin St. Francis hotel get into an Uber.

Guests at The Westin St. Francis hotel get into an Uber.

(Jess Lynn Goss / For The Times)

Gig workers have struggled with rising gas prices in the past.

In 2022, Lyft and Uber temporarily added a surcharge to their fares amid record-high gas prices following Russia’s invasion of Ukraine. This year, Uber is adding a fuel charge to its fares in Australia for roughly two months to offset the high cost of gas for drivers. Lyft said it hasn’t added a fuel charge in the U.S. or elsewhere.

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Margarita Penalosa, who drives full time for Uber and Lyft in Los Angeles, started as a rideshare driver in 2017. Back then, gas was cheaper. She would easily hit her goal of making $300 in eight hours. Now she’s making just $250 after working as much as 14 hours.

Gas prices, she said, used to be less than $3 per gallon. Now some gas stations are charging more than $8 per gallon.

“Take out the gas. Take out the mileage from my car and maintenance. How much [do] I really make? Probably I get $11 for an hour,” she said.

Jonathan Tipton Meyers wants to spend fewer hours as a rideshare driver.

He already juggles multiple gigs even while driving for Uber and Lyft in Los Angeles. He’s a mobile notary and loan signing agent, a writer and performer.

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Driving is “a very challenging, full-time job,” he said. “It’s very taxing and, of course, wages were just continually decreasing.”

A man stands for a portrait in a white button up shirt

John Mejia, a longtime Lyft and Uber driver, poses for a portrait before attending a meeting about unionizing gig drivers.

(Jess Lynn Goss / For The Times)

Even if oil continues to flow through the Strait of Hormuz, which Iran reopened Friday, it could take a while for gas prices to come down to earth, said Mark Zandi, the chief economist at Moody’s Analytics.

“There’s an old adage that prices rise like a rocket and fall like a feather,” he said. “I think that’ll apply.”

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In the meantime, it will be survival of the fittest drivers. If enough of them decide to leave the apps, the ride-hailing companies could be forced to raise fares further to attract some back.

“Those who approach rideshare driving strategically, tracking expenses, choosing trips carefully, and optimizing efficiency are far more likely to weather periods of high gas prices,” wrote Avedian in the Rideshare Guy blog. “For everyone else, a spike at the pump can quickly turn rideshare driving from a side hustle into a money-losing venture.”

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‘We’ve lost our way’: Clifton’s operator gives up on downtown Los Angeles

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‘We’ve lost our way’: Clifton’s operator gives up on downtown Los Angeles

The proprietor of Los Angeles’ legendary Clifton’s has given up on reopening the shuttered venue.

It’s just too difficult to do business in downtown’s historic core, he says.

Andrew Meieran bought Clifton’s on Broadway in 2010 and poured more than $14 million into repairs, renovations and upgrades, adding additional bar and restaurant spaces in the four-story building. In 2018, he found that demand for cafeteria food was too low to be profitable, and he pivoted to a nightclub and lounge concept called Clifton’s Republic, featuring multiple dining and drinking venues. Meieran has tried elaborate themed environments, such as a tiki bar and forest playgrounds, and renting out the location for big events to spark more interest.

It was never easy, but during and since the pandemic, the neighborhood has grown increasingly unsafe as downtown has emptied of office workers and visitors.

Storefronts are gated up due to vandalism in the historic district in downtown Los Angeles on Tuesday.

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(Eric Thayer / Los Angeles Times)

The alley behind Clifton's Cafeteria in the downtown historic district Tuesday.

The alley behind Clifton’s Cafeteria in the downtown historic district Tuesday.

(Eric Thayer / Los Angeles Times)

Vandalism has been rampant, with graffiti appearing on the historic structure almost daily. Vandals would use acid or diamond glass cutters to deface the windows, often cracking the glass. It would cost Meieran more than $30,000 each time to replace the windows. Insurance companies either stopped offering policies that covered vandalism or raised premiums by as much as 600%, he said.

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There has been continuous crime in the area, he said, including multiple assaults on people in front of his building. He last shut the venue last year, hoping things would improve and he could come back with a business that could work. Now he has given up. Someone else may take over the space or even the name of the historic spot, but he is done trying.

“We’ve lost our way,” Meieran said. “I want to get up on the tops of the skyscrapers and yell that people need to pay attention to this.”

The disenchantment of a business leader who used to be one of downtown L.A.’s biggest backers shines a spotlight on the stubborn safety concerns, rising costs and thinner foot traffic that have made it increasingly difficult for even iconic businesses to survive.

The once-popular institution dates back to 1935, when it was a Depression-era cafeteria and kitschy oasis that sold as many as 15,000 meals a day when Broadway was the city’s entertainment hub.

It served traditional cafeteria food such as pot roast, mashed potatoes and Jell-O in a woodsy grotto among fake redwood trees and a stone-wrapped waterfall reminiscent of Brookdale Lodge in Northern California.

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It’s not the only once-prominent destination that has failed to find a way to flourish in today’s market. Cole’s, one of L.A.’s most famous restaurants and often credited with inventing the French dip sandwich, closed last month after a 118-year run.

“The bigger problem for us and the rest of the industry is the high cost of doing business,” said Cedd Moses, who used to operate Cole’s and has backed many other bars and restaurants in historic buildings downtown for decades. “That’s what is killing independent restaurants in this city.”

Outside of Clifton's Cafeteria.

Outside of Clifton’s Cafeteria.

(Eric Thayer / Los Angeles Times)

Clifton's Republic owner Andrew Meieran stands next to a boat on the top floor of the historic restaurant in 2024.

Clifton’s Republic owner Andrew Meieran stands next to a boat on the top floor of the historic restaurant in 2024.

(Wally Skalij / Los Angeles Times)

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Clifton’s opened and closed repeatedly during the pandemic and, more recently, after a burst pipe caused extensive damage. Meieran opened it for special events such as last Halloween, but it has otherwise been closed.

Police are woefully understaffed and hampered by public policy, said Blair Besten, president of downtown’s Historic Core Business Improvement District, a nonprofit that arranges graffiti removal, trash pickup and safety patrols in the area.

Businesses and residents in the area would like to see a bigger police presence, but there have been protests against that by people who are not from downtown, she said.

“People are starting to see the fruits of the defunding movement,” she said. “It has not led us to a better place as a city.”

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The Los Angeles Police Department is making progress downtown, Captain Kelly Muniz said, with violent crime down more than 10% from last year.

“While we’re working very hard to solve crime, to prevent crime, there are still elements such as trash, open-air drug use, homelessness and graffiti,” she said. “We’re swinging in the right direction.”

Retailers have been opting out of downtown L.A., said real estate broker Derrick Moore of CBRE, who helps arrange commercial property leases. Brands have headed to more vibrant nearby neighborhoods such as Echo Park and Silver Lake.

“A lot of operators are just electing to skip over downtown,” he said. “They’re leasing spaces elsewhere, where they feel they have a greater chance at higher sales.”

A man walks past a pile of trash left on the street in the historic district.

A man walks past a pile of trash left on the street in the historic district.

(Eric Thayer / Los Angeles Times)

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While some businesses are struggling, many downtown residents say their perceptions of safety are improving and that the area is regaining some vibrancy.

“A lot of people live here. I think people forget that,” Besten said. “We’re all surviving. It’s just hard for all the businesses to survive.”

A green shoot for the Historic Core is Art Night on the first Thursday of every month, when 50 or 60 locations, including permanent art galleries and pop-up galleries in unused storefronts, display art to map-toting visitors who come for the occasion.

They often end up in Spring Street bars, which more typically thrive on weekend nights but are still a draw to downtown.

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“I think nightlife will thrive downtown, since bars attract people that don’t mind a little grittier atmosphere,” said Moses. “Our sales are hitting new records at our bars downtown, fortunately, but our costs have risen dramatically.”

A closed sign for Clifton's Cafeteria.

A closed sign for Clifton’s Cafeteria.

(Eric Thayer / Los Angeles Times)

Clifton’s former backer, Meieran, says he doesn’t think things are going to bounce back enough to warrant more massive investment. He has sold the building, and the owner is looking for a new tenant to occupy Clifton’s space. He still controls the Clifton’s name.

While there is still a chance he could let someone else use the name Clifton’s, Meieran is done for now — too many bad memories.

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“There was a guy who was terrorizing the front of Clifton’s because he decided he wanted to live in the vestibule in front, and he didn’t want us to operate there,” Meieran said. “He would threaten to kill anybody who came through.”

He doesn’t believe official statistics that show crime and homelessness are way down in the area, and he doesn’t want to restart a business when criminals can so easily erase his hard work.

“What business that’s already on thin margins can survive that?” he said.

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